Japan's home appliance industry launched a price war to attack the Chinese market

Unlike white goods, which have become "yellow for tomorrow," Japan's black industry is relying on its prominent technological superiority and price wars that it did not bother about. It has launched a full-scale counterattack on the Chinese market.

Under the double attack of low-cost manufacturing companies and technologically advanced companies in the United States and other emerging regions, the Japanese home appliance industry faces challenges. Although there are certain international leading advantages in certain aspects, how to quickly provide products that are more suitable for consumer needs will be an urgent issue for the Japanese home appliance industry.

In recent years, the proportion of white household electrical appliances in Japan’s major home appliances has been decreasing year by year. During the five years from 2002 to 2007, the proportion of white goods in these companies was less than 20%, and new industries such as electronics and panels were used to support the development and profitability of the company. The development of the current global white market share is basically dominated by Chinese and Korean companies such as Haier and Samsung. However, Japan’s black-box industry is relying on its outstanding technical advantages and price wars that it did not bother in the past and launched a full-scale counterattack on the Chinese market.

Foreign brands, mainly Japanese companies, launched price wars in an unusual manner. According to the data from market research agency Aowei Consulting, the price of color-type motor in the third quarter fell by 9%, excluding the influencing factors of brand structure, size structure, and product positioning. The cumulative decline in the first three quarters reached 16%. Foreign brands in the process of moving closer to domestic brands, the price drop has reached 20% to 30%.

According to a report from DisplaySearch, the OEM ratio of Philips and Toshiba, the color TV brand manufacturers, has exceeded 50%, and Sony has also approached 50%.

Luo Qingqi, a senior director of Pall Consulting, said, “The full production of high-end LCD panels in mainland China will take about two years or so, and Japanese companies will have a time lag this time. Once the industry chain of China’s color TV industry is improved, Japanese companies’ offensive It will automatically disintegrate.” And the well-known market research firm GfK also judged that although Japanese companies are promoting the use of ODM companies, they are only limited to certain products. Moreover, if all manufacturing operations are entrusted to OEMs, Chinese consumers may not purchase Japanese companies' products because of concerns about declining quality.